Chapter

14.6. The Statement of Cash Flows*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. How is net profit or loss calculated?

   "The final figure—or bottom line—on an income statement is the net profit (or net income) or net loss. It is calculated by subtracting all expenses from revenues. If revenues are more than expenses, t

2. Why is the statement of cash flows an important source of information?

   "Net profit or loss is one measure of a company’s financial performance. However, creditors and investors are also keenly interested in how much cash a business generates and how it is used. The state